BILL NUMBER: SB 698	CHAPTERED  09/27/00

	CHAPTER   714
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 25, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   AUGUST 24, 1999
	AMENDED IN ASSEMBLY   JULY 15, 1999

INTRODUCED BY   Senator Peace
   (Coauthor:  Assembly Member Granlund)

                        FEBRUARY 24, 1999

   An act to amend Section 1 of Chapter 700 of the Statutes of 1911,
and to authorize an exchange of public trust lands within the former
Naval Training Center, San Diego, relating to trust property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 698, Peace.  Conveyance of property:  San Diego Unified Port
District: City of San Diego.
   Existing law authorizes the establishment of the San Diego Unified
Port District for the acquisition, construction, maintenance,
operation, development, and regulation of harbor works and
improvements for the harbor of San Diego and for the promotion of
commerce, navigation, fisheries, and recreation.  Existing law
specifies the territory to be included within the district.
   This bill would authorize the State Lands Commission to carry out
an exchange of public trust lands within the Naval Training Center,
San Diego, and require the commission to establish appropriate
procedures for effectuating the exchange.  The bill would authorize
the commission, among other things, to receive and accept on behalf
of the state any lands or interest in lands conveyed to the state by
the San Diego Unified Port District or the City of San Diego, to
convey to the San Diego Unified Port District or to the City of San
Diego all of the right, title, and interest of the state in lands
that are to be free of the public trust upon completion of the
exchange of lands, and to convey to the San Diego Unified Port
District or the City of San Diego all of the right, title, and
interest of the state in lands that are to be subject to the public
trust upon the completion of the exchange of lands.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1 of Chapter 700 of the Statutes of 1911 is
amended to read:
  Section 1.  (a) There is hereby granted and conveyed to the City of
San Diego, in the county of San Diego, State of California, all the
lands situate on the City of San Diego side of said bay, lying and
being between the line of mean high tide and the pierhead line in
said bay, as the same has been or, may hereafter be established by
the federal government, and between the prolongation into the bay of
San Diego to the pier head line of the boundary line between the City
of San Diego and National City, and the prolongation into the bay of
San Diego to the pierhead line of the northerly line of the United
States military reservation on Point Loma.
   (b) There is hereby granted to the City of San Diego (hereafter
"city"), a municipal corporation of the State of California, and to
its successors, all the right, title, and interest of the State of
California, held by the state by virtue of its sovereignty, in and to
all the tide and submerged lands, whether filled or unfilled, within
the present boundaries of the city, and situated below the
historical line of mean high tide of the Pacific Ocean, or of any
harbor, estuary, bay, or inlet within said boundaries, except as the
Legislature has previously conveyed those lands to other entities,
and except as to lands that the city has previously conveyed to other
entities, (such as the San Diego Unified Port District by Conveyance
filed for record February 1963, in Series 4, Book 1963, page 28389).

   (c) The city shall be the public trust administrator for all lands
granted to it pursuant to this section (hereinafter "granted lands"
), and may use, conduct, operate, maintain, manage, administer,
regulate, improve, lease, and control those lands and do all things
necessary in connection with those lands that are in conformance with
the terms of this section and the public trust for commerce,
navigation, and fisheries, except as to any of the lands that are
freed of the public trust by exchange agreements authorized by
statute.
   (d) The city, or its successors, shall not at any time grant,
convey, give, or alienate the granted lands, or any part of them, to
any individual, firm, or corporation for any purpose whatever, except
as provided in this section or otherwise provided by statute, and
except as to any lands freed of the public trust by exchange
agreements authorized by statute.  This subdivision shall not be
construed to prohibit the conveyance of any lands within the former
Naval Training Center, San Diego, including lands previously granted
to the city and subsequently transferred to the United States, to the
San Diego Unified Port District ("port") by the city.
   (e) Notwithstanding the foregoing restriction on alienation, the
city, or its successors, may grant franchises, permits, privileges,
licenses, easements, or leasehold interests (collectively referred to
as "leases" hereafter) in connection with those lands, or any part
of those lands, for limited periods, for purposes consistent with the
trusts upon which the lands are held by the State of California and
this grant, for a term not exceeding 66 years, and on other terms and
conditions that the city may determine, including a right to
terminate the same on the terms, reservations, and conditions that
may be stipulated in the lease or leases, with reversion to the city
on the termination of the lease or leases of any and all improvements
thereon, provided that any terms, reservations, and conditions must
be consistent with the public trust and this section.  All such
leases may include reservations for streets, sewer outlets, gas and
oil mains, hydrants, electric cables and wires, and other municipal
purposes and uses as may be deemed necessary by the city, upon
compensation being made for the injury and damage done to any
improvement or structure thereon.
   (f) All moneys collected by the city arising out of the use or
operation of any of the granted lands that shall remain in the public
trust, including all revenues derived from leases or other rights to
use or occupy the lands, shall be deposited into a special fund
maintained by the city.  The money in, or belonging to, the fund may
be used only for uses and purposes consistent with the public trust
for navigation, commerce, and fisheries, and the requirements of this
section.
   (g) The State of California shall have, at all times, the right,
together with the city if there be no lessee or licensee, or together
with the lesser or licensee, if there be a lessee or licensee, to
use, without charge, all wharves, docks, piers, slips, quays, or
other improvements constructed on the granted lands or any part
thereof, for any vessel or other watercraft, or railroad, owned or
operated by the State of California.
   (h) No discrimination in rates, tolls, or charges for use or in
facilities for any use or service in connection with wharves, docks,
piers, slips, or quays or property operated by the city, or property
leased, the use of which is dedicated by the lessee or licensee for a
public use, shall ever be made, authorized, or permitted.
   (i) There is hereby reserved in the people of the State of
California the right to fish in the waters on which the lands may
front with the right of convenient access to those waters over the
lands for that purpose, the enjoyment of access and right to fish to
be regulated by ordinance of the city, so as not to interfere,
obstruct, retard, or limit the right of navigation or the rights of
lessees or licensees under lease or license given.
   (j) Nothing in this section shall impair or affect any rights or
obligations arising from leases conferring the right to use, occupy,
or conduct operations upon or within the granted lands, provided the
leases were lawfully entered into, consistent with any applicable
public trust or other restrictions on use, prior to the effective
date of the act amending this section.
  SEC. 2.  Sections 1 to 10, inclusive, of this act shall be known,
and may be cited, as the Naval Training Center San Diego Public Trust
Exchange Act.
  SEC. 3.  For purposes of this act, the following definitions apply
unless the context requires otherwise.
   (a) "City" means the City of San Diego.
   (b) "City granting act" means Chapter 700 of the Statutes of 1911,
as amended by Chapter 676 of the Statutes of 1915, Chapter 598 of
the Statutes of 1917, Chapter 642 of the Statutes of 1929, and
Chapter 693 of the Statutes of 1945.
   (c) "Commission" means the State Lands Commission.
   (d) "NTC Property" means those parcels of land lying in the City
of San Diego, County of San Diego, State of California, being a
portion of that area commonly known as Naval Training Center, San
Diego, and more particularly described as follows in paragraphs (1)
and (2):
   (1) Parcel One:  a parcel of land referred to as the "City NTC
Property" described as follows:
      PARCEL ONE
CITY NTC PROPERTY

   A parcel of land referred to as the "City NTC Property" being
Parcels 1 through 16 and 18 in the County of San Diego, City of San
Diego, State of California, all as shown on Record of Survey No.
16556 filed in the Office of the County Recorder of said San Diego on
April 25, 2000 as File No.  2000-210625 of Official Records, being
more particularly described as follows:
   Beginning at the most Northwesterly terminus of that certain line
shown as "North 54*15'14 West 1087.60 feet" on the Northerly line of
said Record of Survey 16556; thence along the Northerly, Easterly and
Southerly lines of said Record of Survey 16556 the following
courses:  South 54*15'14 East 1087.60 feet; thence North 35*45'46
East 0.37 feet; thence South 15*38'02 East 1934.29 feet; thence South
07*30'30 West 412.55 feet; thence South 41*37'23 West 482.21 feet;
thence South 82*29'30 East 270.45 feet; thence South 07*30'30 West
1505.26 feet; thence North 82*35'20 West 8.27 feet; thence South
07*33'09 West 287.95 feet; thence South 82*17'51 East 275.38 feet;
thence South 83*48'36 West 212.78 feet; thence South 07*30'41 West
226.44 feet; thence South 83*48'36 West 61.91 feet; thence North
07*30'29 East 32.25 feet; thence North 81*55'00 West 25.84 feet;
thence South 41*11'00 West 22.90 feet; thence South 18*02'00 East
22.68 feet; thence North 83*48'36 East 29.60 feet, thence South 07*30'
30 West 205.86 feet, thence South 83*48'36 West 1292.59 feet to the
beginning of a tangent 3900.00 foot radius curve concave
Southeasterly; thence Southwesterly along the arc of said curve
through a central angle of 24*16'43 a distance of 1652.59 feet;
thence South 59*31'53 West 698.21 feet; thence North 11*24'16 West
48.41 feet; thence North 30*28'07 West 4.25 feet; thence South 59*31'
53 West 145.32 feet to the beginning of a tangent 950.00 foot radius
curve concave Northwesterly; thence Southwesterly along the arc of
said curve through a central angle of 05*45'44 a distance of 95.54
feet; thence North 53*45'35 West 176.88 feet to the Northwesterly
line of said Parcel 16, said point being the beginning of a
nontangent 800.00 foot radius curve concave Northwesterly, to which a
radial line bears South 18*32'33 East; thence leaving the Southerly
line of said Record of Survey 16556, Northeasterly along the arc of
said curve through a central angle of 11*55'34 a distance of 166.52
feet; thence continuing along the Northwesterly line of said Parcel
16, North 59*31'53 East 827.72 feet to the beginning of a tangent
4100.00 foot radius curve concave Southeasterly; thence Northeasterly
along the arc of said curve through a central angle of 00*44'31 a
distance of 53.087 feet to the most Southerly point of said Parcel
12; thence leaving said Parcel 16, along the Westerly line of said
Parcel 12, North 30*28'07 West 98.45 feet to the beginning of a
tangent 266.00 foot radius curve concave Easterly; thence Northerly
along the arc of said curve through a central angle of 66*44'13 a
distance of 309.83 feet; thence North 36*16'06 East 43.44 feet to the
beginning of a tangent 334.00 foot radius curve concave
Northwesterly; thence Northeasterly along the arc of said curve
through a central angle of 18*30'28 a distance of 107.89 feet; thence
North 36*16'00 East 1307.97 feet to the Southerly line of said
Parcel 6, thence leaving the Westerly line of said Parcel 12 along
said Southerly line of said Parcel 6, North 53*43'30 West 375.81 feet
to the Southeasterly line of said Parcel 14; thence leaving the
Southerly line of said Parcel 6, along said Southeasterly line of
said Parcel 14; South 36*18'40 West 1080.03 feet; thence North 53*43'
54 West 1427.91 feet to the Northwesterly line of said Record of
Survey 16556; thence along said North Westerly line of said Record of
Survey North 36*16'06 East 5287.89 feet to the beginning of a
tangent 37.00 foot radius curve concave Southerly; thence Easterly
along the arc of said curve through a central angle of 89*28'40 a
distance of 57.78 feet to the Point of Beginning.
   (2) Parcel Two:  a parcel of land referred to as the "Port
Expansion Area" described as follows:
      PARCEL 2
PORT EXPANSION AREA

   A parcel of land referred to as the "Port Expansion Area" and
described as follows:
   Commencing at a 6 x 6 concrete monument at the intersection of the
easterly boundary of the U.S. Naval Training Center and the
northerly line of North Harbor Drive as shown on Record of Survey
15213, filed in the Office of the County Recorder of San Diego
County, June 14, 1996; said monument also being an angle point on the
boundary between the United States Navy Land and the San Diego
Unified Port District as shown on Miscellaneous Map No. 564 filed in
the Office of the San Diego County Recorder May 28, 1976; thence
leaving said monument and running northerly along said common
boundary line between United States Navy Land and the San Diego
Unified Port District North 7*30'04 East a distance of 298.75 feet to
the TRUE POINT OF BEGINNING; thence leaving said boundary line North
81*41'44 West a distance of 169.89 feet; thence North 62*33'09 West
a distance of 75.63 feet; thence North 79*05'39 West a distance of
50.13 feet; thence South 22*25'15 West a distance of 29.68 feet; to
the beginning of a curve concave to the south having a radius of
585.00 feet; thence westerly along the arc of said curve through a
central angle of 45*37'20 an arc distance of 465.81 feet; thence
tangentially South 73*58'52 West a distance of 53.50 feet; thence
South 12*35'43 East a distance of 78.72 feet; thence South 74*40'40
West a distance of 69.00 feet; thence South 27*37'00 East a distance
of 96.48 feet; thence South 12*25'55 East a distance of 36.79 feet to
a point on the northerly line of an easement granted to the City of
San Diego, recorded November 7, 1962, as File No. 191492 OR and shown
said Record of Survey Map No. 15213; thence along said line South
83*48'36 West a distance of 173.78 to a point of the boundary of that
1.936 acres parcel shown on Record of Survey No.  15789 filed in the
Office of the County Recorder of San Diego County, April 17, 1998;
thence along said boundary North 7*17'01 East a distance of 285.12
feet; thence North 82*35'20 West a distance of 283.26 feet to that
certain line shown as North 7*30'30 East a distance of 3,103.29 feet
on sheet six of said Record of Survey No. 15213; thence leaving the
northerly line of said Record of Survey No. 15789 and along said line
of Record of Survey 15213 North 7*30'30 East a distance of 1,505.26
feet to an angle point on the boundary of said Record of Survey
15213; thence along said boundary South 82*29'30 East a distance of
85.00 feet; thence North 39*16'25 East a distance of 740.24 feet;
thence South 73*29'30 East a distance of 407.08 feet; thence South
16*30'30 West a distance of 411.60 feet; thence 411.60 feet; thence
South 73*29'30 East a distance of 415.51 feet to a point on the above
described common boundary line between the United States Navy and
the San Diego Unified Port District; thence along said boundary line
South 7*30'04 West a distance of 1,604.11 feet to the TRUE POINT OF
BEGINNING.
   Courses referred to in the above descriptions are based upon the
California Coordinate System, Zone 6 (N.A.D. 83).
   (e) "Port" means the San Diego Unified Port District.
   (f) "Port granting act" means Chapter 67 of the Statutes of 1962,
as amended.
   (g) "Public trust" or "trust" means the common-law and
constitutional public trust for commerce, navigation and fisheries.
  SEC. 4.  The Legislature hereby finds and declares as follows:
   (a) The purpose of this act is to facilitate the productive reuse
of the lands comprising the former Naval Training Center, San Diego
in a manner that will promote economic development in the City of San
Diego and enhance water-related recreational opportunities in a
manner that will further the purposes of the public trust for
commerce, navigation, and fisheries.  To effectuate these purposes,
this act approves, and authorizes the commission to carry out, an
exchange of lands under which certain nontrust lands on the NTC
Property with substantial value for the public trust would be placed
into the public trust, and certain other lands presently subject to
the public trust or asserted to be, but in any event no longer useful
for trust purposes, would be freed from trust restrictions.  This
act also delegates to the port and to the city, as specified herein,
the responsibility of administering the public trust on lands within
the NTC Property.
   (b) In 1911, the state granted to the City of San Diego the tide
and submerged lands within San Diego Bay, "situate on the city of San
Diego side of said bay," lying between the mean high tide line and
the pierhead line, in trust for purposes of commerce, navigation, and
fisheries and subject to the terms and conditions specified in that
act.  Section 3 of this 1911 grant prohibited the alienation of the
granted lands.  In 1913, by Chapter 250 of the Statutes of 1913, the
Legislature authorized cities to convey tide and submerged lands to
the United States "for public purposes."
   (c) In 1929, Chapter 642 of the Statutes of 1929 amended the 1911
grant to the City of San Diego by declaring that all areas shoreward
of the bulkhead line as then established had ceased to be tidelands
and were freed of all trusts and restrictions on those lands, except
the restriction against alienation.  The meaning and legal impact of
Chapter 642 of the Statutes of 1929 remain subjects of uncertainty
and disagreement.  In the same year, the Legislature passed another
act authorizing the grant of tide or submerged lands to the United
States for public or governmental purposes, and confirmed all grants
of tide and submerged lands that had been previously made.
   (d) Beginning in  1916, the city made several transfers of
portions of the granted lands to the United States for purposes of
constructing and operating what came to be known as the Naval
Training Center, San Diego.  The city in 1916 conveyed 56 acres of
land to the United States lying waterward of the historic mean high
tide line and extending to the bulkhead line.  An additional 76 acres
of tidelands lying waterward of the historic mean high tide line and
extending to the bulkhead line were conveyed in 1919 to the United
States.  Then, in 1933, the city conveyed to the United States 95
acres lying waterward of the bulkhead line and extending to the
pierhead line.  Most of the transferred tide and submerged lands were
subsequently filled and reclaimed by the Navy in furtherance of its
plan for development of the Naval Training Center.  The Navy filled
an additional 135 acres of submerged lands lying waterward of the
pierhead line in developing NTC San Diego.
   (e) The Navy also acquired and developed substantial acreage for
NTC San Diego that were historically uplands, never property of the
State of California in its sovereign capacity, and thus not subject
to the public trust.
   (f) In 1993, the Defense Base Closure and Realignment Commission
recommended closure of the Naval Training Center, San Diego under the
Defense Base Closure and Realignment Act of 1990, and the center was
closed operationally in April, 1997.  As authorized by federal law,
the Navy is in the process of transferring certain portions of the
NTC Property under a no-cost economic development conveyance and two
public benefit conveyances to the city, the local reuse authority for
the NTC San Diego.  The port expansion area will be conveyed to the
San Diego Unified Port District by a public benefit conveyance.  All
former and existing tide and submerged lands on the NTC Property for
which the public trust has not been extinguished through the
completion of the exchange this chapter authorizes will be subject to
the public trust upon their release from federal ownership.
   (g) The existing configuration of trust and nontrust lands on the
NTC Property is such that the purposes of the public trust cannot be
fully realized, and is the subject of dispute between the city and
the state.  That is because certain filled and reclaimed tidelands on
the NTC Property have been cut off from access to navigable waters
and are no longer needed or required for the promotion of the public
trust, or any of the purposes set forth in the city granting act.
Other lands on the NTC Property directly adjacent to the waterfront
or otherwise of high value to the public trust are currently either
public trust lands or in dispute as to their public trust status.
Absent a trust exchange, substantial portions of the waterfront on
the NTC Property would be subject to uncertainty regarding their
public trust status and could be cut off from public access, while
certain nonwaterfront lands not useful for trust purposes would be
restricted to trust-consistent uses.
   (h) A trust exchange that results in the configuration of trust
lands substantially similar to that depicted on the diagram in
Section 9 maximizes the overall benefits to the trust, without
interfering with trust uses or purposes, and resolves legal
uncertainties, to the benefit of the public trust.  Following the
exchange, all lands within the NTC Property adjacent to the
waterfront will be subject to the public trust, together with the
port expansion area, which shall be used for purposes permitted by
the port granting act.  The lands that will be removed from the trust
pursuant to the exchange have been cut off from navigable waters,
constitute a relatively small portion of the granted lands, and are
no longer needed or required for the promotion of the public trust.
The commission shall ensure that the lands or interests added to the
trust pursuant to the exchange are of equal or greater value than the
lands or interests taken out of the trust.
   (i) The reuse of public trust lands on former military bases
presents a number of challenges not normally confronted in the public
trust administration of active waterfronts, including the
remediation of hazardous wastes on some bases and the presence of
buildings that were constructed on former tidelands during the period
of federal ownership, when the public trust was effectively in
abeyance.  In the case of NTC Property, there is one building that
falls into this category, the child care center, which will be on
public trust property at the completion of the exchange.  The child
care center was built by the Navy for nontrust purposes, and has a
remaining useful life.  The child care center will lie on lands that
will be subject to the public trust following the exchange authorized
by this act, and the conversion of the lands underlying the child
care center to trust uses should proceed in a manner that will enable
the people of this state to benefit from the substantial public
investments made in the buildings without hindering the overall goal
of preserving the public trust.
   (j) The completion of the trust exchange authorized by this act
will have numerous benefits to the public trust.  Among them are the
creation of a wide corridor of public trust land along the northern
side of the boat channel, which is planned to be developed as a
public park; the confirmation as public trust land of sites for
possible development of hotels; and the establishment as public trust
lands of land necessary for the expansion of the San Diego Airport,
together with a public access corridor along the southern side of the
boat channel.
  SEC. 5.  (a) The Legislature hereby approves an exchange of public
trust lands within the NTC Property, whereby certain public trust
lands that are not now useful for public trust purposes are freed of
the public trust and certain other lands that are not now public
trust lands, or are subject to uncertainty as to their trust status,
and that are useful for public trust purposes are made subject to the
public trust, resulting in a configuration of trust lands that is
substantially similar to that shown on the diagram in Section 9,
provided the exchange complies with the requirements of this act.
The exchange is consistent with and furthers the purposes of the
public trust and the city granting act and the port granting act.
   (b) The commission is authorized to carry out an exchange of
public trust lands within the NTC Property, in accordance with the
requirements of this act.  Pursuant to this authority, the commission
shall establish appropriate procedures for effectuating the
exchange.  The procedures shall include procedures for ensuring that
lands are not exchanged into the trust until any necessary hazardous
material remediation for those lands has been completed, and may
include, if appropriate, procedures for completing the exchange in
phases.
   (c) The precise boundaries of the lands to be taken out of the
trust and the lands to be put into the trust pursuant to the exchange
shall be determined by the commission.  The commission shall not
approve the exchange of any trust lands unless and until all of the
following occur:
   (1) The commission finds that the configuration of trust lands on
the NTC Property upon completion of the exchange will not differ
significantly from the configuration shown on the diagram in Section
9, and includes all lands presently subject to tidal action within
the NTC Property.
   (2) The commission finds that, with respect to the trust exchange
as finally configured, the economic value of the lands that are to be
exchanged into the trust, as phased, is equal to or greater than the
value of the lands to be exchanged out of the trust.  The commission
may give economic value to the port expansion area confirmed as
public trust lands as provided in subdivision (h).
   (3) The commission finds that, with respect to the trust exchange
as finally configured and phased, the lands to be taken out of the
trust have been filled and reclaimed, are cut off from access to
navigable waters, are no longer needed or required for the promotion
of the public trust, and constitute a relatively small portion of the
lands originally granted to the city, and that the exchange will not
result in substantial interference with trust uses and purposes.
   (4) The exchange is approved by the entity or entities that, under
the provisions of the city granting act, the port granting act, and
this act, would be responsible for administering the public trust
with respect to the lands to be exchanged into the trust, and any
such lands will be accepted by such entity or entities subject to the
public trust and the requirements of the city granting act or port
granting act, as applicable.
   (d) The exchange authorized by this act is subject to any
additional conditions that the commission determines are necessary
for the protection of the public trust.  At a minimum, the commission
shall establish conditions to ensure both of the following:
   (1) Streets and other transportation facilities located on trust
lands are designed to be compatible with the public trust.
   (2) Lands are not exchanged, or confirmed, into the trust until
any necessary hazardous materials remediation for those lands has
been completed.
   (e) All former or existing tide or submerged lands within the NTC
Property for which the public trust has not been terminated pursuant
to the exchange authorized by this act, and any lands exchanged or
confirmed into the trust pursuant to this act, shall be held, whether
by the port or by the city, subject to the public trust and the
requirements of the city granting act as public trust lands within
the city NTC Property, or the port granting act, as to the land
within the port expansion area.  In addition, notwithstanding the
provisions of the city granting act, during any period in which lands
confirmed to the city as lands subject to the city granting act are
held by the Redevelopment Agency of
           the City of San Diego rather than the city, the
Redevelopment Agency shall be the public trust administrator for the
lands, and shall have the same powers and be subject to the same
requirements as would the city under the granting act.
   (f) Any lands exchanged out of the trust pursuant to this act
shall be deemed free of the public trust and the requirements of the
city granting act.
   (g) For purposes of effectuating the exchange authorized by this
act, the commission may do all of the following:
   (1) Receive and accept on behalf of the state any lands or
interest in lands conveyed to the state by the port or the city,
including lands that are now and that will remain subject to the
public trust.
   (2) Convey to the city or port by patent all of the right, title,
and interest of the state in lands that are to be free of the public
trust upon completion of an exchange of lands as authorized by this
act and as approved by the commission.
   (3) Convey to the city or port by patent all of the right, title,
and interest of the state in lands that are to be subject to the
public trust and the terms of this act and the granting act upon
completion of an exchange of lands as authorized by this act and as
approved by the commission, subject to the terms, conditions, and
reservations that the commission may determine are necessary to meet
the requirements of subdivisions (d) and (e).
   (h) To achieve the configuration of public trust lands shown in
the diagram in Section 10, the port, simultaneous with or following
its receipt of the port expansion area, shall confirm its title as
tide and submerged lands subject to the port granting act by
agreement with the commission.  The port and the commission may make
conveyances between themselves to establish the title to the port
expansion area as public trust lands subject to the port granting
act.
   (i) In any case where the state, pursuant to this act, conveys
filled tidelands and submerged lands transferred to the city pursuant
to Chapter 700 of the Statutes of 1911, as amended, the state shall
reserve all minerals and all mineral rights in the lands of every
kind and character now known to exist or hereafter discovered,
including, but not limited to, oil and gas and rights thereto,
together with the sole, exclusive, and perpetual right to explore
for, remove, and dispose of those minerals by any means or methods
suitable to the state or to its successors and assignees, except
that, notwithstanding Chapter 700 of the Statutes of 1911, as
amended, or Section 6401 of the Public Resources Code, the
reservations shall not include the right of the state or its
successors or assignees in connection with any mineral exploration,
removal, or disposal activity, to do either of the following:
   (1) Enter upon, use, or damage the surface of the lands or
interfere with the use of the surface by any grantee or by the
grantee's successor or assignees.
   (2) Conduct any mining activities of any nature whatsoever above a
plane located 500 feet below the surface of the lands without the
prior written permission of any grantee of the lands or the grantee's
successors or assigns.
  SEC. 6.  (a) (1) Notwithstanding the provisions of the granting
act, the existing child care center  on trust lands within the NTC
Property, which was constructed for nontrust purposes during the
period of federal ownership and is incapable of being devoted to
public trust purposes, may be used for such nontrust purposes for the
remaining useful life of such building.  The city and the
commission, by agreement, shall establish the remaining useful life
of the child care center, provided that in no case shall the useful
life of the child care center be deemed to extend less than 15 years
or more than 40 years from the effective date of this act.
   (2) The maintenance, repair, or, in the event of a flood, fire, or
similar disaster, partial reconstruction of  the child care center,
and any structural or other alterations necessary to bring the child
care center into compliance with applicable federal, state, and local
health and safety standards, including, but not limited to, seismic
upgrading, shall be permitted, provided those activities will not
enlarge the footprint or the size of the shell of the child care
center.
  SEC. 7.  All moneys arising out of the use or operation of any
lands on the NTC Property subject to the public trust, including all
revenues derived from leases, permits, franchises, privileges,
licenses, easements, and the rights to use or occupy the trust lands,
collected by the city as to public trust lands within the City NTC
Property, or the port, as to the port expansion area, shall be
maintained in a fund separate from the city's or port's general
revenues.  The money in or belonging to that fund may be used only
for uses and purposes consistent with the public trust for
navigation, commerce, and fisheries, the granting act, and this act.

  SEC. 8.  The state reserves the right to amend, modify, or revoke
any and all rights to the lands granted to the City pursuant to
Chapter 700 of the Statutes of 1911.
  SEC. 9.  The following diagram is hereby made a part of this act:

  SEC. 10.  The commission, the city, and the port shall work
expeditiously toward completing the land exchange directed by this
act.
  SEC. 11.  The Legislature finds and declares that, because of the
unique circumstances applicable only to the lands within the City of
San Diego described in this act, relating to the closure of the Naval
Training Center, San Diego, a statute of general applicability
cannot be enacted within the meaning of subdivision (b) of Section 16
of Article IV of the California Constitution.  Therefore, this
special statute is necessary.
